Final ch 12, Final Chapter 9, final Ch. 8, Ch 2, Chapter 11

Which of the following is not a question commonly asked by banks of entrepreneurs?

What interest rate did you have in mind?

At start-up time, forms of financing includes all but which of the following?

equitable payback

Which of the following would be most commonly used for medium-term financing?

finance companies

Which of the following is (are) sources of capital for entrepreneurs?

equity

When starting a business, which of the following sources of financing are least likely to be used?

insurance companies

Because the advantages of going public outweigh the disadvantages, it is in a corporation's best interest to go public.

False

Regulation D augments the regulations for reports and statements required for selling stock to private parties, friends, employees, customers, relatives, local professionals.

False

Sophisticated investors are wealthy individuals who invest more or less regularly in new and/or early- and late-stage ventures.

True

Venture capitalists are a valuable source of equity funding for new ventures.

True

Venture capitalists are slow to invest.

True

Which suggestions is to minimize legal costs?

Visit the lawyer during normal hours of operation

When securing a bank loan an entrepreneur should be prepared to answer which of the following questions except?

What is the price of your product?

Many new ventures find that debt financing is

necessary.

Which of the following would be most commonly used for long-term financing?

insurance companies

Which of the following is not a type of debt financing?

private placement

When going public with public offerings an advantage might be

size of the company's capital amount.

Which falls un chapter 7 bankruptcy?

The debtor is relieved of obligations

One of the most frequently used criterion in evaluating new ventures, is the ability of the entrepreneur to sustain intense effort.

True

Private placement is a method of raising capital through the private placement of securities.

True

The average size of a social loan is around $7,000.

True

The business plan is a critical element in a new-venture proposal.

True

The most common sources of debt financing are commercial banks.

True

The most common source of debt financing is

commercial banks.

Which of the following is a type of equity financing?

common stock

The owner of a copyright may do all of the following except?

Deduct the intrinsic value of the rights from one's taxes

The process of trademark registration is?

Expensive

A person who loses an infringement battle in court may have to pay...

Extra legal fees

Because of the ___ doctrine, its sometimes difficult to establish infringement fair use.

Fair use

Specific forms of partnership include...

Limited partnerships and limited liability partnerships

SEC stands for the

Securities and Exchange Commission.

The text of a patent application is known as the?

Specification

There are 2 parts to a patent application, claims and?

Specification

NOT true about financial assumptions

They do not necessarily correlate with info from other parts of the business

Which of the following would be most commonly used for short-term financing?

trade credit

Social lending sites are different from so-called microlending sites.

True

Sources of debt financing include trade credit, accounts receivables, factoring, and finance companies.

True

The speculation section of a patent application should include all of the following...

A budget for handling infringement

Copyrights may be expressed in?

Books, periodicals, motion pictures

Entrepreneurs are rarely able to set up a business without investment funds or bank loans.

False

Equity financing is money invested in the venture with legal obligations to repay the principal amount of interest or interest rate on it.

False

Public offering is a term used to refer to corporations taking public donations to raise capital.

False

The venture capital pool is rapidly declining due to overfunding.

False

There is no way for the venture capitalist adequately to evaluate a new venture.

False

There is only a small number of informal risk capitalists in the market today.

False

Venture capitalists need only basic summary information before they make funding decisions.

False

Venture capitalists, surprisingly, require little information before they make an investment.

False

Copyrights can be placed on all of the following except?

Ideas

To effectively pursue a patent violation, experts recommend that the entrepreneur...

Prepare a realistic budget for infringement

If an entrepreneur concludes that an innovation will withstand any legal challenge, a patent should be...

Pursued

Use of debt to finance a new venture involves a payback of funds plus an interest fee for the use of the money.

True

When accounts receivable are bought from a company for capital funding it is called

factoring.

Short-term debt is

paid back in one year.

Advantages of debt financing include all of the following except:

regular interest payments.

When starting a business, which of the following sources of financing are most likely to be used?

trade credit

Which of the following is a way in which a trademark may be invalidated?

Cancellation proceeding

The emerging body of law governing cyberspace is often referred to as

Cyberlaw

Venture capitalists are quick to invest.

False

A disadvantage of debt financing is

regular interest payments.

A typical symptom of impending bankruptcy failure is when...

Other firms seem to be selling products that are a generation ahead

The registration of a trademark has a lifetime of?

10 years plus 10-year renewable periods

Design patent protection lasts for ___ years?

14 years

Which of the following is NOT a trademark?

A sales price, Generic words

What is true about sole proprietorships?

A sole proprietorship is a business that is owned and operated by 1 person

What % of issued patents is considered commercially valuable?

A very small %

According to the U.S. Patent Office, the process of obtaining a patent takes how many months?

About 24 months

Anyone who violates an author's exclusive rights under a copyright is liable for?

Infringement

Financial info is important to entrepreneurs because:

It pulls together all the info presented in other segments of the business and it qualifies all the assumptions concerning business operations

Defined the corporation as "an artificial being, invisible, intangible, and existing only in contemplation of the law"

Justice John Marshall

Approximately how many commercial banks are there in this country?

about 7,000

Long-term debt is used for

both a and b.

Where does S corporation take its name?

From subchapter S of the Internal Revenue Code

When a trademark becomes the name of a general group of products or services, the trademark protection may be lost because of

Generic meaning

A patent gives the holder a temporary?

Monopoly

A trademark is a distinctive ___ that is identified with a company's product.

Name

Which of the following is a useful rule used to avoid pitfalls in selecting a trademark?

Never choose a trademark without first conducting a trademark search

The determination of fair use of copyrighted material is based on...

The effect of use on potential market

A potential danger of social lending is the implication that social loans may be viewed as gifts and taxed accordingly.

True

Frugality is deemed a bootstrapping technique.

True

Patents that are not design patents have ___ years of protection?

20 years

Works created after Jan. 1,1978, have a copyright for the life of the author plus?

70 years

When considering bankruptcy, entrepreneurs as sole proprietors normally prefer...

Chapter 13

An infringement budget deals with...

Legal battles

That part of a patent application which identifies the features that are protected are known as the?

Claim

The 2 parts to a patent application are specification, and?

Claims

In the context of trademark invalidation, if a party seeks to prove that a trademark has not been used within 6 years of registration, it is known as?

Cleaning-out procedure

All of the following are ways of invalidating a trademark except?

Clearing-out proceedings

B corporations legal structure expands corporate accountability to encompass all of the following EXCEPT...

Comprehensive and transparent environmental standards

Legal protection is granted to computer programs in what form?

Copyright

How does death affect the duration of a corporation?

Corporation is unaffected by the death of a founding shareholder

Most venture capital funds later stages of venture development, not the start-up (or seed) stage.

False

Venture capital firms want to own control of the firms in which they invest.

False

Venture capitalists are usually satisfied with a reasonable return on investments.

False

What is an indicator that an entrepreneur's business is failing?

Liquidation

Which is not one of the major sections of the bankruptcy act?

Liquidation

Advantages of partnerships EXCEPT...

Possible tax advantages

History and nature of the company, capital structure, and description of any material contracts are just a few examples of the specific detailed information that must be presented about a firm that is going public.

True

For the author of creative material to obtain a copyright, the material must be in ____ form.

Tangible

In order to obtain a patent, an application should be filed with?

The Patent and Trademark Office of the Department of Commerce

Informal risk capitalists are often referred to as "business angels."

True

Informal risk capitalists are those who have already made their money and now seek to help new ventures.

True